REG - Schroder Euro Real - Property Portfolio Valuation

Schroder European Real Estate Investment TrustAnnouncement

11/04/2024 07:00

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RNS Number : 0745K  Schroder Eur Real Est Inv Trust PLC  11 April 2024

11 April 2024

PROPERTY PORTFOLIO VALUATION

 

Schroder European Real Estate Investment Trust plc ("SERE" or the "Company"),
the company investing in real estate in European growth cities, today provides
an update on the independent valuation of the property portfolio as at 31
March 2024:

-     The direct property portfolio was independently valued at €208.1
million. The marginal like-for-like decrease over the quarter of -1.0% (31
December 2023 -1.8%), or -€2.2 million,(1) was driven by continued outward
yield movement, particularly for offices and select retail. The rental income
has remained stable with a continuing high level of rent collection and the
portfolio benefiting from indexation and high occupancy of 96%

-    The portfolio office assets (33%(2)) witnessed a valuation decline of
-€0.9 million, or -1.1%, comprising:

o  Stuttgart (-€1.0m/-5.0%) and Hamburg (-€0.3m/-1.4%), reflecting 25
basis points and 15 basis points of outward yield movement respectively.

o  The St Cloud, Paris valuation increased €0.4 million, or 1.1%, driven by
indexed-led income growth and a new 6/9/12 year lease for 540 sqm of office
space.

-     The portfolio industrial assets (30%(2)) witnessed a valuation
increase of €0.3 million, or 0.4%, driven by index-linked income growth in
Rennes, France, as well as estimated rental value ("ERV") growth in Venray,
the Netherlands.

-     The German retail portfolio (17%(2)) valuation declined -€0.9
million, or -2.3%, due to 15 basis points of outward yield movement in the
Berlin DIY investment, whilst the Frankfurt grocery asset valuation remained
unchanged.

-     The valuation of the two alternative investments (9%(2)) declined
marginally to €0.7 million, or -3.2%, as a result of c.15-35 basis points of
outward yield shift.

-     Based on 31 March 2024 values and following the recent Rennes
logistics loan refinancing, the portfolio LTV is approximately 33% based on
gross asset value and 24% net of cash (31 December 2023 LTV 33% gross and 24%
net of cash).

-    The Company remains well positioned with significant cash reserves
and is continuing to review select sustainability-led capex initiatives in the
portfolio, which should optimise earnings growth and asset liquidity.

(1)   In addition, the Company has a 50% interest in a joint venture in
Seville which continues to be recognised at nil value

(2)   Including available cash

 

Enquiries:

Jeff O'Dwyer

Schroder Real Estate Investment Management
Limited                 Tel: 020 7658 6000

Shilla Pindoria

Schroder Investment Management Limited
            Tel: 020 7658 6000

Dido Laurimore/Richard Gotla/Ollie Parsons

FTI Consulting
                                               Tel:
020 3727 1000

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